Which Refinancing Option is Right for You?
There aren't as many loan program choices as there are borrowers, but it feels like it sometimes! We can guide you to find the loan program that will fit your situation the best. Call us at 754-202-4376 to get started. There are several things to have in mind as you review your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even as interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great choice. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you expect to move in the next few years.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity in your refinance? Maybe you want to make home improvements, take care of your college kid's tuition, or take your family on a dream vacation. With this in mind, you will need to find a loan higher than the balance remaining of your present mortgage loan.In this case, you will need However, if your interest rate is currently high and you've held it for a long time, you may be able to accomplish your goals without a rise in your mortgage payment.
Do you hold other debt, perhaps with a high interest rate, that you need to consolidate? If you have the equity in your home for it, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your monthly budget.
Building up Equity Faster
Are you wanting to fatten up your home equity faster, and get your mortgage paid off sooner? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. The monthly payments will probably be higher than they were with a longer term mortgage, but the pay-off is: that you will pay considerably less interest and will build up equity more quickly. Conversely, if your current longer term mortgage has a low remaining balance, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at 754-202-4376. We will help you reach your goals!
Curious about refinancing? Call us: 754-202-4376.